(2 November 2012 – New Zealand) International credit rating agency Standard & Poor’s (S&P) has lowered Kiwibank’s credit rating one level from AA- to A+ (outlook stable).Kiwibank’s short-term credit rating has also been lowered to A-1. The rating action mirrors similar action on the bank’s parent, New Zealand Post.
Kiwibank’s standalone credit profile is unchanged at ‘BBB’.
The rating returns Kiwibank to one level below the large Australian banks. For the past eight months it had been at the same level.
Kiwibank chief executive Paul Brock said “the downgrade is disappointing but Kiwibank remains among highest rated banks in the world”.
In other news, Kiwibank Limited is considering making an offer of up to NZ$150 million (A$118 million) of unsecured, Subordinated Bonds to the New Zealand public. The terms of the Subordinated Bonds will be structured to be recognised as tier 2 regulatory capital.
It is expected that the offer of Subordinated Bonds will be made from 5 November.